Sims value cut by 30% after profits warning
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.THIRTY per cent was wiped off the stock market value of Sims Food yesterday after a profits warning, writes Robert Cole.
The butcher is set to record a loss for the year ended 31 March. It made pounds 9.3m of pre-tax profits in the previous 12 months.
Brian Ford, chief executive, said that profits before tax and exceptional charges would be pounds 6m, but there would be pounds 6.5m of one-off restructuring costs.
The shares fell from 182p to 129p. At the start of last year they were trading above 300p.
The company also said it would cut its total dividend by one-third to 7.5p.
At the time Sims published its interim results last November gearing was 40 per cent. Mr Ford would not give an update on borrowing levels yesterday.
Sims has been hit hard by overcapacity in the supply of red meat. Supermarkets, which dominate food shopping, are also cutting suppliers' profit margins.
Sims is not the only one with problems in the red meat market. Hillsdown Holdings, the largest player, made a pounds 92m provision for reorganisation when it announced 1992 profits in March.
Since sterling's devaluation last year British beef and lamb have become cheaper for overseas buyers but lower export prices have increased prices at home.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments